Summary of Financial Results for 1st Half & Fiscal 2022 Guidance
Mid Term Business Plan (2021-2023) Progress Update- Strategic Growth Investment -August 10, 2022
Member of the Board
Global CEO and Representative Executive Officer
Shu Ishibashi

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Today’s agenda
1. Summary of Financial Results for 1st Half & Fiscal 2022 Guidance
2. Mid Term Business Plan (2021-2023) Progress Update- Strategic Growth Investment -3/32

Summary of Financial Results for 1st Half 2022: Return to a “strong” Bridgestone capable of adapting to change■ Summary of Financial Results for the 1st Half – vs. previous year :1) Revenue: +Approx. 370 B JPY increase (125% vs. PY)
Achieved significant increase, including impacts from currency exchange, the weak yen
Negative factors

2021 1H Results(Unit: B JPY)

Before reclassification(Results disclosed last year)

After
reclassification*

1,568.8

1,510.4

Revenue

2022 1H
Results*

1,886.3

vs. PY (%)+25■ Irregular negative impacts:
1. Suspension of manufacturing in & export to Russia
2. Lockdown in China due to resurgence of COVID-19
3. Cyber- incident at a subsidiary in U.S.
■ Continued disruption in the supply chain around the world

REP** Premium tire sales growth % (1st Half 2022)

117<INDEX: 1st Half 2021＝100＞

106

2021
2022
乗用車用高インチ（18インチ以上）
HRD tires for passenger cars
(18-inch and above)

2021
2022
トラック・バス
Truck & bus tires

111

2021
2022
鉱山用タイヤ（超大型）Tires for mining vehicles (ultra-large)* US building products business was classified as discontinued operations in 1Q of fiscal 2021. In accordance with business transfer decisions
announced in Dec. 2021, the anti-vibration rubber business and chemical products solutions business was also classified as discontinued
operations. Accordingly, revenue & adjusted operating profit show figures for continuing operations and exclude revenue & expenses of the
discontinued operations. Note that 2021 results have been restated using the same classification as that used for 2022.

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Flexible agile management &reinforcement of premium business strategy■ Maximize supply through flexible agile supply management
based on global manufacturing footprints- Leverage premium tire manufacturing sites in Japan & Asia
■ Based on product power of Dan-Totsu products, achieved
sales & market share expansion of premium tires in REP- HRD*** tires for passenger cars (18 inch and above)- Truck & bus tires- Ultra-large tires for mining vehicles**REP: Tires for replacement***HRD: High Rim DiameterSummary of Financial Results for 1st Half 2022: Return to a “strong” Bridgestone capable of adapting to change■ Summary of Financial Results for the 1st Half – vs. previous year :2) Adjusted Operating Profit: + Approx. 24 B JPY increase (113% vs. PY) / Margin: 11% (-1.1% vs. PY)
2021 1H Results
2022 1H
Results*

Beforereclassification

After
reclassification*

1,568.8

1,510.4

1,886.3+25

Adjusted Operating Profit

176.2

182.4

206.6

+13

MarginProfit Attributable to
Owners of Parent

11.2%

12.1%

11.0%

(1.1) pp

352.3

352.3

92.9

(74)

- Continuing Operations

123.6

131.3

117.6

(10)

- Discontinued Operations

228.7

221.0

(247)

-

(Unit: B JPY)

Revenue(Results disclosed
last year)

vs. PY (%)3) Profit/Loss from Continuing Operations: - 13.7 B JPY (90% vs. PY)■ Responded to Irregular negative impacts (suspension of
production in & export to Russia, China COVID-19 impact,
and cyber incident at subsidiary in U.S.) through flexible
agile management mainly in supply chain, and minimized
impact to profits■ Largely covered impacts of unprecedented raw material
inflation through improvement in premium tire sales mix& strategic price management including price increase
based on product power of Dan-Totsu products.
■ Responded to cost inflation in energy, labor, ocean
freight, logistics fuel cost, etc. through expense & cost
structure reformation such as:
・ Productivity improvement throughmanufacturing improvement
・ Global procurement initiatives
・ Thorough expense management
however, unable to cover all impacts.

Recorded 32.6 B JPY of adjustment items such as loss related to the Russian business(impairment loss of fixed assets, etc.), expense related to safety inspection at Bridgestone Cycle Corp., etc.
* US building products business was classified as discontinued operations in 1Q of fiscal 2021. In accordance with business transfer decisions announced in Dec. 2021, the anti-vibration rubber businessand chemical products solutions business was also classified as discontinued operations. Accordingly, revenue & adjusted operating profit show figures for continuing operations and exclude revenue& expenses of the discontinued operations. Note that 2021 results have been restated using the same classification as that used for 2022.

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Summary of Fiscal 2022 Guidance: Return to a “strong” Bridgestone capable of adapting to change
 Revenue: Plan 4,000 B JPY level including currency exchange impact – reinforce flexible agile management in supply chain leveraging
global manufacturing footprint, continue expanding sales & market share of premium tires based on product power of
Dan-Totsu product (HRD passenger car tires, Truck & bus tires, mining vehicles tires) Gross profit: Maintain original guidance in Feb. levels –largely cover impact of unprecedented raw material inflation throughimprovement of premium tire sales mix & strategic price management including price increase, planned -1.5% vs. PY
due to irregular negative impacts and continuing inflation of energy & labor costs, etc.
■ 2022 Revenue guidance:
・ vs. PY: 122％
Approx. 700 B JPY increase
60.0%
・ vs. original guidance in Feb:
300 B JPY increase
55.0%

Evolution of revenue and gross profit (excluding M&A impact)
45,000

Revenue
40,000[B JPY]

3,790

3,507

3,246

35,00015,000
Diversified products
business
10,000Tire business
5,000
Solutions business
0

39.5%

35.0%

■ Solutions business revenue portion:
30.0%
2022: Approx. 19%
25.0%

2015

2019

2020*

2021*

2022
Mid Term Business
Plan (2021-2023)

JPN account.
standards

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40% level

39.3%

38.0%

2022

2022

Guidance(As of Feb.)

Guidance(As of Aug.)International accounting standards (IFRS)(including foreign exchange impact)■ 2022 Gross profit guidance:
・ vs. PY: -1.5%
45.0%
・ vs. original guidance in Feb:
Maintain 39% level
40.0%

39.0%
40.6%

37.8%

3,950

3,300 level 50.0%

2,695

30,00025,000Gross profit[%]
20,000

3,100
level

3,650

2023

⇒Aim to exceed 20% of total
revenue in 2023

20.0%

Mid Term Business
Plan (2021-2023)*Excluding U.S. building products business,
Automotive anti-vibration rubber
business,
and Chemical products solutions businessSummary of Fiscal 2022 Guidance: Return to a “strong” Bridgestone capable of adapting to changeAdj. Operating Profit & Margin: Continue flexible agile management to manage irregular negative impacts. Respond to cost inflation in ocean freight,
logistics fuel cost, labor, etc. by expense & cost structure reformation such as cost reduction through global procurement initiatives andthorough expense management. Slight decrease in margin vs. previous year, but maintain 11% level in line with original guidance in Feb.



Profit from continuing operations: Record losses related to Russian business & expense related to safety inspection at Bridgestone Cycle Corp. as adjustment items.
Slight decrease vs. original guidance in Feb.
■ 2022 Guidance
ROIC: Exceed 2021 level and plan 9% above - expect to achieve original guidance in Feb.
Adj. Operating Profit :Adj. Operating Profit / Net Profit / OPEX % / ROIC / ROE (Excluding M&A impact)・ vs. previous year: 114％
Approx. 56 B JPY increase
6,000
450 level16.0%
14.7%
・ vs. original guidance in Feb:
13% level394
360 level425
25 B JPY increase
14.0%
450
5,000
517
12.1% 11% level
11.6%■ Margin:
13.6%
343
Adj. Operating
12.0%
11.4%
4,000
・ vs. previous year: - 0.8％
Profit [B JPY]
9.8%
10.0%
・ vs. original guidance in Feb:
207
9.3%
284
Adj. Operating Profit
3,000
Maintain 11% level
10% level
7.7%
Margin [%]
8.0%
280
9.0%
9.2%
290 level■ ROIC：
2,000
8% level 290
308
Profit from continuing
6.0%
240
・ vs. previous year: +0.3%
220 level
operations [B JPY]
5.1%
7.4%
・ vs. original guidance in Feb:
1,000
4.0%
Same level
ROIC



0

-20

2019

2020*

2021*

25.8%
13.3％

28.0%

30.3%

28.4%

29% level 27.6%

27.7%

27% level

10.0%

-0.9%

12.9%

9% level 11.3%

10.8%

12% level(1,000)OPEX %ROE
ROE

JPN account. standards

Mid Term Business
Plan (2021-2023)

2022

2022

Guidance
Guidance(As of Feb.) (As of Aug.)International accounting standards (IFRS)*Excluding U.S. building products business, Automotive anti-vibration rubber business, and Chemical products solutions business

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2022

2023

2.0%

2015

Mid Term Business
Plan (2021-2023) 0.0%

Excluding irregular negative
impacts, near completing“rebuilding of earning power”
by ensuring improvement ofbusiness quality.

2. Mid Term Business Plan (2021-2023) Progress Update- Strategic Growth Investment -8/32

Mid Term Business Plan (2021-2023) Progress Update- Strategic Growth Investment “Lay foundation for future growth”
2021

2023

2022 August
Sustainability at the core

Stage

“Strong”
Bridgestone“Tackle past negative legacies without delay” / “Focus on execution and delivering results for immediate issues/ “Lay foundation for future growth”

capable of adapting
to change

Rebuilding earning power
Strategic growth investment

 Premium tire business
Invest in building foundations for premium tire business, drive & reinforce “ENLITEN business strategy”
Core business

Growth business Solutions business
Make strategic growth investments in building foundations to accelerate growth
Enhancement of tire-centric solutions biz / retail & service solutions biz / mobility solutions biz( Revenue portion: 2023 Target )Tire

Solutions

Exploratory business Start in areas where Bridgestone can leverage its core competencies:
With sustainability at the core, explore technologies & business models mainly upstream & downstream of supply chain
Guayule business / Natural rubber business, Recycle business, new challenge in Diversified products business – Soft robotics business

Diversified products
business Sharply focus on areas where Bridgestone’s core competencies can be leveraged:
Invest in reinforcing premium business, and building solutions business

Reinforce
investment in talent Address problems specific to Japan: Align talent strategy with business strategy, execute additional measures
especially for on-site & young talent

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Strategic Growth Investment ‐Lay foundation for future growth‐
Build foundations for premium & solutions business1. Premium tire business

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Build foundations for premium tire business: Reinforce structure to “produce and sell”■ Globally reinforce structure to “produce and sell” premium products - HRD tires for passenger cars
 Sales: Drive sales growth in U.S.& Europe and Production: To prepare to further sales expansion 2023 and onwards, makeemerging markets globally:
Expand sales from OE*, and take in REP recursion
demandinvestments in each plant to replace equipment & increase capacity⇒ Fully leverage production capacity in existing plants<2022 Plan>
Sales ratio of tires 18 inch and above (U.S. & Europe)
OE

53%

55%

61%

62%

REP

25%
2019 2020 2021 2022 Plan

28%

20sites Approx.48 B JPY in total
33% 36%2019 2020 2021 2022 Plan

Sales ratio of tires 17 inch and above (Emerging markets)
Asia Pacific, China, S. America
OE

53%

58%

63% 65%

REP

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Joliette (Canada)Bari (Italy)

Hikone/Tosu/Hofu/
Tochigi (Japan)
Aiken (U.S.)
Wuxi (China)
Cuernavaca (Mexico)Hsin-Chu (Taiwan)

Tianjin (China)

Burgos (Spain)
Indore (India)
Pune (India)

Hai Phong (Vietnam)
Nong Khae (Thailand)
Karawang (Indonesia)

27%2019 2020 2021 2022 Plan

Total investments in 2021-2330%

33% 35%2019 2020 2021 2022 Plan

Brits (South Africa)

San Jose (Costa Rica)
Bahia (Brazil)(announced July 2021)*OE: Tires on new vehicles

Build foundations for premium tire business: Reinforce structure to “produce and sell”
 Make investments to reinforce global structure to produce premium tire - truck & bus tires,tires for mining & construction vehicles, etc.
Build foundations for the premium tire business in coordination with the enhancement of solutions business

Tires for mining & construction vehicles Investment to reinforce production
 Build premium tire business based around Dan-Totsu
product “MasterCore” / link with enhancement ofsolutions business• Shimonoseki plant: Upgrade equipment• Saga plant: reinforce production of steel cord

Motorcycle tires –Investment to reinforce production
 Focus on premium race & sports areas
Global No.1* in OE fitment for the premium category- Further reinforce premium position• Nasu plant enhancement

Total investments
in 2021-23
Approx.

Truck & bus tires - Investment to expand production capacity
 Chonburi plant, Thailand: Reinforce as global supply source

74 B JPY
Shimonoseki/Saga/Nasu(Japan)Chonburi (Thailand)

Akron (U.S.)

Build sustainable tire production structure★Production of sustainable tires using guayule as raw material
for NTT INDYCAR® SERIES:Advanced Tire Production Center (Akron, U.S.)* Bridgestone estimates for large superbike category over 1000cc

Build premium tire manufacturing footprint network with sustainability at the core,
and also execute investments for going green & smart over a mid-long term
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Premium tire business: Build “new premium” ENLITEN business strategy
 Build ENLITEN business strategy as the “new premium” in which Bridgestone will uniquely create value,and place it at the core of the premium tire business“ENLITEN” the innovative tire technology optimized to fit EVs
Evolve as a “business strategy” covering
technology, products and business models
For passenger car tires: New premium in EV era
For truck and bus tires: New premium in circular business era
Sustainability vs. business growth
Customization of tire performance vs. productivity improvement & cost
optimization across value chain

Simultaneously create value that cansometimes be contradictory~ 20232030

Build “ENLITEN business strategy” toward expansion of REP products from 2024
Plan: ENLITEN product # / equipment % (for REP)

Plan: ENLITEN product # / equipment % (for REP)

‐PS* : 2023 - Approx. 10% ⇒ 2024 - Approx. 20 products/ Approx. 25%- LT* : 2023 - Approx. 10% ⇒ 2024 - Approx. 10 products/ Approx. 20%- TB* : 2023 - Approx. 10% ⇒ 2024 - Approx. 30 products/ Approx. 20%(Product #: 2022-2024 cumulative)

13/32- PS: Approx. 60 products / Approx. 100%
- LT: Approx. 30 products / Approx. 100%
- TB: Approx. 90 products / Over 70%(Product #: 2022-2030 cumulative)*PS: Passenger car tires, TB: Truck & bus tires, LT: Light truck tires

Premium tire business – ENLITEN business strategy for passenger car tires:
New premium in EV era

 Expand OE fitment of tires equipped with “ENLITEN”, an innovative tire technology optimized to fit EVs,
globally to various vehicle models‐Committed to supporting the realization of a carbon neutral mobility society from the ground up
Vehicles fitted with ENLITEN: 2021 end
 Major examples of
ENLITEN fitment on EVs

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AUDI

Q4 e-tronBMW

iX

Mercedes-Benz

VISION EQXX (concept car)

SKODA

ENYAQ

VW

ID.3 / ID.4

FIAT

500e

TOYOTAbZ4X

SUBARUSOLTERRA

LIGHTYEARLightyear One

Fisker

Ocean

NIO

eT7

27models (including 7 EVs) ⇒ June 2022 34 models (including 12 EVs) New social & customer value created by ENLITEN technology
Value ENLITEN equipped tires will provide vehicles:

・ Through each product, provide tire performance customized to eachvehicle & customer usage conditions
Customize performances to meet EV requirements,
bring out the maximum driving experience of the vehicle
・ Contribute to solving problems related to electrification (improving power
consumption, ensuring driving range, weight & cost increase, etc.)
Significant improvements in EV driving range & electricity consumption
through innovative rolling resistance reduction of tires*
Contribute to reducing battery load for EVs‐Lighter vehicle weight, cost reduction, improvement of space utility
Key EV OE fitment (2022):

TOYOTA bZ4X

(ALENZA 001/TURANZA EL450)

Examples of products equippedwith ENLITEN:
ALENZA 001/TURANZA EL450*vs. Bridgestone conventional product

SUBARU SOLTERRA(ALENZA 001/TURANZA EL450)

Premium tire business – ENLITEN business strategy for truck & bus tires:
New premium in circular business era

 Create new value across entire value chain,linked with solutions business such as retread, mobility solutions & recycle business
Build a business model that also contributes to realizing a circular economy & carbon neutrality
 Launch the global first TB tire, equipped with ENLITEN technology, from the Japanese market:
Build a circular business model combining “Dan-Totsu Product” and “Retread” in Japan
 Business model (Japan): 1st “Dan-Totsu product” equipped with
ENLITEN technology (Japan):All-round studless W999 (To be launched Sept. 2022)
Balances ice performance & durability at a high level,with improved performance against irregular wear.
→ Extends tire replacement cycle, improves resource
productivity. Also contributes to reducing man-hours
for tire maintenance.

Maximize value linked with solutions
New tire・ Global expansion of products equipped with“ENLITEN” technology
・ Development of new tires suited for retread(increased durability/performanceagainst irregular wear, etc.)

Retread・ Approx. 50% reduction in raw material consumption– improve resource productivity
・ Contribute to reducing approx. 50% of CO2 emissions
during tire manufacturing**In the case of 1 Bridgestone fuel efficient new tire + retread 2 times“Real” × “Digital”
 Strategic growth investment to enhance
retread in Japan• Reinforce equipment & manpower in retread
manufacturing sites• Reinforce structure to collect used tires for retreading

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Dan-Totsu solution network
Dan-Totsu service
Approx.

900 sites(Stores registered as Bridgestone Service Network
in Japan, end of 2021)

Digital solution tool
“Real-time monitoring”(Service to start from Sept. 2022)
Prevent operation trouble resulting from tires, remotereal-time monitoring of tire air pressure & temperature(Global rollout from 2012, Service in Japan from Dec. 2020)

Premium tire business – ENLITEN business strategy for light truck & bus tires
 Combining “New premium in EV era” for passenger cars, and “New premium in circular business era”
for truck & bus, build business model for light truck & bus matching adapted to characteristics of each markets in each region“Support the realization of a carbon neutral mobility society & circular economy also for “MaaS” and “last one mile delivery”
ENLITEN business strategy for light truck & bus tires
combining “Dan-Totsu product” and “solutions”

Dan-Totsu product“Dan-Totsu product” equipped with
ENLITEN technology

Extended EV driving range / Increased wear life
/ Less resources used

(Planned to be launched for REP in this fall)Tire-centric solutions
Aim to establish wear prediction model / retread for light trucks
Contribute to realizing a circular economy

Retail & Service solutions
Enhance maintenance / subscription models

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 2022 – Start from expanding OE fitment (Japan):

DURAVIS R207A

OE fitment on Hino’s light BEV truck,
HINO DUTRO Z EV

Strategic Growth Investment ‐Lay foundation for future growth‐
Build foundations for premium & solutions business
2. Build foundation for accelerating the growth of solutions business

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Build foundation for accelerating the growth of solutions business Strategic growth investment to accelerate solution business : Executed investment in retail & service solutions business (U.S.), mobility
solutions business (EU & U.S.), tire centric solutions business – retread (Japan & U.S.) & mining solutions by 1st half, 2022-> Determining growth potential, profitability and synergy by each business toward next mid term business plan (2024-2026)
Enhancement of Retail & Service Solutions Business

Enhancement of Mobility Solutions Business・ Webfleet Solutions service enhancement in EU and global（Digital fleet solutions provider, Europe）

Investments Amount（2021-23）
Approx.

72 B JPY

Strategic investment in Mobile vehicle
maintenance service (Mobile van) provider (U.S.)・Wrench / Yoshi
Reinforcement of Tire Centric Solutions Business・ U.S. – Investment in reinforcement of retread
・ Strategic investment in Tyrata（Tire sensor/data management service provider, U.S.）
Enhancement of Mobility Solutions Business・ Acquisition of Arvento Mobile Systems A.Ş.

(Digital fleet solution provider, Turkey)(Agreed on acquisition by BRISA, Bridgestone’s affiliated company)

Reinforcement of Tire Centric Solutions Business (Mining Solutions)

Enhancement of Mobility Solutions Business
Reinforcement of Tire Centric Solutions Business・ Japan Investment for retread solution
enhancement• Acquisition of Otraco International Pty Ltd（Mining vehicle tire solutions provider, Australia/ Chile/ South Africa)• Acquisition of iTrack solutions business from Transense Technologies(Mining solutions provider, UK) ） (Acquired in 2020)

Enhance mining solutions through “real” x ”digital” leveraging 120 solutions sites
including sites of Otraco which provide on-site service, and digital vehicle
monitoring tool with Dan-Totsu product MasterCore

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・Acquisition of Azuga Holdings Inc.
(Digital fleet solutions provider, U.S.)

Investment in Start-up
Lay foundation for development of new mobility and technologies

・ Strategic investment in May Mobility（Autonomous driving technology development, U.S.）・ Strategic investment in Kodiak Robotics(Autonomous long-haul trucking technology development, U.S.)・ Strategic investment in TIER Ⅳ（Autonomous driving technology development, Japan）

Foundation for accelerating the growth of solutions business:
Enhancement of retail & service solutions business Strengthen investment in the U.S. which has Dan-Totsu network
Reinforce value proposition during the “use” of tires : UX -Provide tire & vehicle maintenance customized to each customer

Approx.

Enhancement of mobile van service

Provide maintenance on-site to customers when vehicle breakdown occurs

 Enhancement of Bridgestone own service(approx. 80 vehicles, approx. 90 mechanics)※ as of June 2022

2,200

sites (U.S., Company-owned)

Enhancement of EV charging solutions network Partnership with Blink Charging,
EV charging solutions provider
Plan to build approx. 50 charging ports in 2022

 Strategic investment in external partners• Wrench：approx. 130 mechanics+ approx. 400 contractor mechanics• Yoshi：approx. 50 mechanics

 Expansion of service in Australia with Lube Mobile(acquired in 2018): Approx. 230 vehicles
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 Partnership with EVBOX in Europe

Realize carbon-neutral mobility society in global

Foundation for accelerating the growth of solutions business:
Enhancement of mobility solutions business Start 「Fleetcare」 - subscription model service that integrates premium tire + service & solutions+ vehicle (fleet)management and provides the customized combination in one package - from June 2022 in Europe⇒ aim to expand this concept in global centered around Europe, U.S., and Australia

Premium tire

• Premium tire sales

Tire centric service & solutions••••

Tire maintenance・repair
Tirematics（Tire monitoring）
RetreadTire management across the lifecycleof new + retread tires
etc.

Vehicle (fleet) management••••

Optimum operation, navigation for traffic
Fleet operation optimization with digital toolGreen & safe driving support
Vehicle & asset tracking including EV
etc.

Bridgestone as “One team” provides customized service in one package - offer with ”One contract & One invoice”
Premium tire businessRetread, Tire monitoring

Retail & service solutions

Retail store network in EU

Mobility solutions

Enhance synergy with premium tire business mainly around Webfleet Solutions in Europe and Australia andAzuga in North America with approx. 1 million connected vehicles
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Strategic Growth Investment ‐Lay foundation for future growth‐
Build foundations for premium & solutions business3. Premium strategy in diversified products business

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Premium strategy in diversified products business Promote investment in reinforcing premium business and solutions in diversified products business,placing sustainability at its core
Investments Amount（2021-23）

Hydraulic hose

Hydraulic excavator fitted withhydraulic hose

Air spring

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Diversified products businessApprox.

Investment for the production ofpremium hydraulic hose
Production capacity expansion
at Rayong plant in Thailand –(Investment amount including
beyond 2024: Approx. 13 B JPY)

8 B JPY
Diversified products business

EV air spring – support the shift to EVs
Production capacity expansion
at Williamsburg plant in the U.S.

Hydraulic hose business:
Develop and sell competitive premium products utilizing “master forming hybrid
polymer” technology based on Bridgestone’s core competence “mastery of rubber”

Diversified products business: Hydraulic hose business Execute investment in expanding manufacturing capacity of premium hydraulic hose in Thailand – Enhance premium and solutions businessHydraulichosebusiness- Sales revenue in approx. 56 B JPY in 2021 full year - global products business for construction machineries such as hydraulic excavator- Based on Dan-Totsu product with strong core competencies such as “master forming hybrid polymer” technology to handle rubber andglobal footprint (manufacturing & sales)- Contribute to nonstop operations in various industries with the business model linking original equipment, replacement sales and solutions

R&D

Yokohama Diversified products Technology Center, Japan

U.S. Hydraulic hose sales and service company:
Expand solutions mainly around HOSEPOWER

Manufacturing plants

Seki & Kumamoto, Japan
Changzhou, China
Rayong, Thailand

Retail & service
Solutions Mobile service (U.S.)(Approx. 100 vehicles)

Main market – Bridgestone’s sales and solutions channel
N. America - Bridgestone HOSE POWER– Approx. 50 sites (company owned)
Japan - Hose Shop (Distributor) – Approx. 600 sites
Developing business in China, Asia and Europe as wellHave No.1※ sales and solutions channel networkof replacement in Japan and N. America※ BS estimate by the number of sites

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Replacement・Premium OE**Original Equipment

Reinforce premium strategy – strengthening structurethat “produces and sells” Dan-Totsu products Reinforce production/supply structure: Expand manufacturing capacityof premium hydraulic hose at Thailand plant
 Strengthening sales of replacement hydraulic hose leveraging No.1
channel network

Strategic Growth Investment ‐Lay foundation for future growth‐
Build foundations for premium & solutions business
4. Realize Sustainability Business Model

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Realize Sustainability Business Model Execute investment to realize carbon neutrality and circular economy across the value chain- “produce and sell”, “use” and “renew” tires and products

Recycle business

Guayule business

Explore technologies which “renew” tires to
raw materials in global, centered around Japan and U.S.
- Promote initiatives based on co-creation

Invest resource mainly in U.S- diversification of natural rubber sources

Investments Amount（2021-23）
Natural rubber businessApprox.

500 M JPY

(Investment amount including beyond
2024: Approx. 3.2 B JPY)

Invest in planting high quality seedlings (elite tree) with stable yieldat 2 natural rubber plantations in Indonesia, Asia
Natural rubber resource “Para rubber tree”

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Energy

Realize Sustainability Business Model

Ecology
Empowerment

 Strengthen our initiatives to realize “carbon-neutrality and circular economy” for the sake of the Earth,which future generations of children have entrusted in our care
 Carbon neutrality

 Circular economy

Scope 1&2

2030: Reduction of CO2 emissions -50% (vs 2011)  2050: Carbon neutrality- 2022: Plan to achieve -25%, 2023: reinforce initiatives aiming to achieve more than -30%
Expand use of renewable energy (electricity) % : 2021 16% ⇒ 2022 above 20％⇒ 2023 planning above 50％‐Switched electricity sourced from outside providers to 100% renewable energy for all European sites of BSEMIA,
4 plants (Hikone/Shimonoseki/ Tosu/Kitakyushu) in Japan and 2 plants (Tianjin/Wuxi) in China,
further expansion in Thailand etc. / Start the transformation of existing plants to green & smart sites

Scope 32030：Contribute to reducing more than 5 times of our emissions  2050: Carbon neutrality- 2022 : SBT* Application - Under review for certification (including Scope 1-2 targets)
Start from procurement - Enhance suppliers’ engagement ⇒Promote a review process to set quantitativeemissions reduction target
2030: Recycled & renewable material ratio 40％ / 2050: 100％ sustainable material- 2022: Expected to achieve 37% as planned, 2023: 37% above
Reinforce the alignment with ENLITEN business strategy and product strategy (including retread),promote use of renewable materials*SBT : Science Based Target

Investment to realize carbon neutrality/circular economy across the value chain - “produce and sell”, “use” and “renew”
Natural rubber
business

Investment in elite tree planting
at natural rubber plantation in Indonesia, Asia

GuayulebusinessResource investment mainly in U.S. with Bridgestone Americas
taking initiative – diversification of natural rubber sources

Recyclebusiness

Explore technologies which renew tires to raw materials- promote initiatives based on co-creation⇒ Promote use and exploration of biotechnologies
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Strategic Growth Investment ‐Lay foundation for future growth‐
Build foundations for premium & solutions business
5. Reinforcement of talent investment (Japan)

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Reinforcement of talent investment■ Talent strategy aligned with business strategy
 Accelerate initiatives globally to realize both growth of Bridgestone and individuals working at Bridgestone as challenge Global culture change in line with Bridgestone E8 Commitment
Confirm global common strength and further improvement items based on the result of engagement survey
Global common strength• Quality and customer-oriented spirit• Permeation of vision and strategy

Global common improvement items• Collaboration (Overcome organizational silos)• Agile operation• DE&I• Talent development<Japan> Strengthen initiatives in Japan especially on younger employees and at manufacturing sites
to tackle improvement items based on engagement survey and women empowerment.
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Reinforcement of talent investment (Japan)
2020

Mid Term Business Plan（2021-2023）

Return to a “Strong” Bridgestone“Tackle past negative legacies squarely without delay”/ ”Focus on execution and delivering results”/ “Lay foundation for the future growth”
Mid Term Business Plan
Investment in
training anddevelopmentin Bridgestone
Corporation

2021

Approx.

400 M JPY

2022

Approx.

800 M JPY 55,000 JPY / person

Have driven initiatives on HRX[Talents on-site]
Approx.

Approx.

3.3B JPY[Younger talents][Managers]
Approx.

300 M JPY

1.5 B JPY

100,000 JPY /person level※

2023
Continue to reinforce※ including capital investment, etc.

Strengthen affinity for Bridgestone`s culture, DNA, and pride

Expand top managements town hall meetings
Develop COVID-19 measures to ensure peace of mind for
employees, families and communities
Develop talents having potential to be top management innext generation (Bridgestone Next100)
Promotion female managers (with mentor system)
Promote new workstyles (Remote, free address, Promotion of ABW)
etc.

*ABW：Activity Based Working – employees can design their workstyles according to their own styles

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level※※Number of employees; Approx. 14,000

2H 2022 additional measures

as critical management issue since 2020
in gradual execution applying PDCA cycle,
still need to be improved

Simple and lean organization

2023 Plan“talent on-site”

Improve employee welfare & benefit, and working environment(especially at manufacturing sites)“Younger talent” Introduce On-site 100 days challenge and1 year/ 2 years challenge system
Expand DX training (reskilling)“Managers”

Introduce coaching training/ 360 degree evaluation
Succession plan (plan 30 % filled by female candidates)etc.

Strategic Growth Investment ‐Lay foundation for future growth‐
Build foundations for premium & solutions business
Strategic resource

30/32Strategic resource“Aggressive approach” and “Challenge”

Mid Term Business Plan (2021-2023): Inject approx. 620 B JPY level of strategic resources
M&A / CVC / Strategic partnership

Strategic investment / Strategic expenses
Approx.

2021
ResultApprox.

82B JPY

500 B JPY

2022
Forecast
Approx.

144 B JPY

Approx.

2023
Plan
Approx.

272 B JPY

2021
ResultApprox.

50 B JPY

120 B JPY

2022
Forecast
Approx.

60 B JPY

2023
Plan
Approx.

10 B JPY

Premium tire business: Strengthen structure of “produce and sell” premium products
Solutions business: Retail & service solutions business >>> Reinforce investment in mobile van service etc. and focusing on the U.S.
Tire centric solutions business >>> Reinforce investment in retread, enhance mining solutions
Mobility solutions business >>>Enhance service and global expansion
Start strategic investment in start-ups >>> Lay foundations for new mobility and technologies development
Sustainability: Continue investments in the realization of carbon neutrality and circular economy and biotechnologies
Talent investment: Reinforce investment in talent strategy in line with business strategy

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2030 Long Term Strategic Aspiration - Bridgestone 3.0 Journey - Roadmap in the challenge to become a global standard excellent company Announcement : August 31, 2022 (Wed.)

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Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are not historical facts areforward-looking statements about the future performance of Bridgestone. Forward-looking statements include, but are not limited to, those statements using words such as"believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words of similar meaning in connection with a
discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in othermaterials released to the public. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Bridgestone
cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, andtherefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.

Copyright © Bridgestone Corporation

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